Probability, Statistics & Linear Algebra — Quantitative Finance Practice Questions

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1. Applying Itô's lemma to f(S_t)=S_t^4, what is the instantaneous drift rate of S_t^4 — the coefficient of dt in
2. By the Feynman–Kac theorem, V(S,t)=e^-r(T-t)E[payoff(S_T)mid S_t=S], where the expectation is taken over which